Can I File Bankruptcy for a Judgment Against Me?


Quick Answer

Not all judgments can be discharged in a Chapter 7 individual bankruptcy filing. Certain types of obligations, including some judgments resulting from them, do not go away, according to Cornell University Law School.

Continue Reading
Related Videos

Full Answer

The most common consumer bankruptcy filing is a Chapter 7 petition. Chapter 7 allows for a fresh start, free from consumer debts such as credit card debts and other obligations you cannot pay. Sometimes a creditor may sue in court and obtain a judgment or a medical provider may sue for its bill and obtain a judgment. Those types of judgments are generally dischargeable, meaning they are wiped out, as well as the underlying debt, and the creditor cannot come after you to collect, explains Cornell University.

There are, however, some categories of judgments that are not dischargeable. The law, found at 11 U.S. Code Section 523, is complex and the following list is not exhaustive. These obligations include most taxes, educational loans, obligations for spousal and child support and any obligation that is the result of fraud or other serious wrongdoing. For instance, a judgment for injuries caused by drunk driving remains an obligation, notes Cornell University. As with all legal matters, consult a qualified attorney to answer your specific questions about your particular situation.

Learn more about Credit & Lending

Related Questions